The personal insurance policy of the party at fault covers the damages caused by a road accident. But have you ever wondered what will happen if the vehicle was being operated by a software, that is, a self drive car? Who pays for the damages?
Every year you can see advancements in the auto industry like automated features and crash avoidance technology. Undoubtedly, a significant number of today’s high-end cars and some mid-priced ones already have options, for example the blind-spot monitoring, forward-collision warnings and lane-departure warnings. Fully automated vehicles will definitely be having these components.
Prediction says that as much as 10 million cars will be furnished with self-driving features by the year 2020. If true, this does not leave much time to come up with a proper solution to the risk issue. When they do, specialists predict insurance premiums will drop to a very low level as robot cars deliver lower accident, injury and death rates.
Over the next 25 years, autonomous vehicles will be the cause of decrease in auto accidents, which could be around 80 percent from current levels. With the decrease in accidents and lower premiums, the question is who should be paying the for the damages? For most of the accidents the software and not the human will be blamed. The vendor of the car will need insurance more than the owner of the vehicle. The usual comprehensive as well as uninsured driver will be needed by the owner.
The fully automated vehicles will also have an option of driving manually. So the case might vary if the driver was in charge and not the software. If the driver chose to drive and meets with an accident, he will be liable to pay for the vehicle damage as well as the human body damages. If the owner does not drive most of the time, they should be able to get lower cost insurance to handle their reduced driving,
But with a self-driving car that’s slightly less evolved and requires driver mediation in emergencies. In the event you didn’t take control when called upon, you could be on the hook for damages.
As automated-driving technology takes hold, virtually everything around car insurance is relied upon to change, from who is the owner of the vehicles to who must carry insurance to who or what is held responsible for causing damage, wounds and death in an accident.
That implies that insurance issues may initially grow more complex but with the due course of time it will surely get simpler, when human-caused accidents mostly disappear.
Few insurance companies are already offering discounted rates on cars with assistive features such as blind-spot warnings and collision preparation systems that tighten seat belts. So with more and more features the premium will keep going lower but it will surely not disappear according to experts, as there will be some or the other way through which accidents might occur. For example: the owner did not service the vehicle for a long time, or doesn’t repair his vehicle. And if such a vehicle meets with an accident the damages has to be taken by the owner. So many such conditions may apply in the future with the advancement in the auto industry.
So to sum it up the predictions are that : It will surely be beneficial for users as the premium is expected to go low along with the accident free rides. There might be a few complications which the insurance companies will come up with a conclusion as the self drives cars actually become more popular. But it will surely have a huge impact on the auto insurance industry.